Question
Two projects cost 100000 to start and produce cash flows over the next 5 years according to this schedule. The cost of capital is 6.5%
Two projects cost 100000 to start and produce cash flows over the next 5 years according to this schedule. The cost of capital is 6.5%
Year Project1 Project2
1 30000 25000
2 35000 25000
3 40000 25000
4 30000 15000
5 25000 15000
What is the NPV of project 2?
What is the NPV for project 1?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
5th Edition
0078034663, 978-0078034664
